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2012 (8) TMI 762 - AT - Income TaxDeduction u/s 54 - capital gain on sale of property on 27.12.04 - new flat purchased on 04.07.03 - deduction denied on ground that new flat purchased on 4.7.2003, is beyond one year from the sale of the flat on 27.12.2004 - full consideration paid and possession taken on 29.04.05 - Held that:- As per the provisions of S2(47)(v), the transaction of transfer is deemed to be completed at the time when the conditions u/s 53A of the Transfer of Property Act are fulfilled. One of the essential conditions is handing over of the possession and part payment of consideration. Since in present case, new flat to be purchased by the assessee was not in existence at the time of agreement dated 5.7.2003; but was to be constructed by the builder, therefore, the transaction of purchase cannot be said to have been completed. Purchase of the new flat by the assessee will be treated on the date when the assessee has received the possession after it is constructed and not on the date of agreement for purchase when the flat itself was not in existence. Claim u/s 54 allowed - Decided in favor of assessee
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